What is Subscription churn?
Subscription churn is the loss of customers who cancel or let a recurring order lapse, and it is the main limit on the value of a subscription business.
Churn can be voluntary, such as someone deciding they no longer need the product, or involuntary, such as a failed card payment. They need different responses.
Email supports both. Reminders before a renewal, shipment notices and tips for using the product keep the value visible, while payment failure messages give customers a clear way to update their details.
Exit information is useful too. Asking why someone cancelled, and offering a pause or a change of frequency instead, can retain customers who simply have too much stock.
A worked example.
Imagine a hypothetical coffee subscription where some customers cancel because they have too much stock. The brand adds a pause and a frequency change option to its cancellation emails, and sends a payment update reminder when a card fails.
Common mistakes.
- Treating all churn as the same problem
- Sending payment failure messages late or not at all
- Offering only a discount at cancellation
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